In its latest filing on Thursday, the U.S. Securities and Exchange Commission lodged an appeal seeking to overturn certain aspects of the previous ruling in favor of Ripple and XRP in July 2023. While the SEC no longer disputes that the sale of XRP to retail investors through exchanges did not constitute the sale of securities, the impact of this appeal on the price has been minimal.
XRP has mainly been trading within the range of $0.52 to $0.62 since July, showing no significant deviation in this trend. As of the current moment, the token remains in a consolidation phase.
Potential Positive Reaction to Encourage XRP Buyers
Although XRP’s market structure exhibited technical bullish signals, the narrower trading range between $0.52 and $0.62 has somewhat diluted the significance of this factor. The defense of the $0.52 level in October might have acted as a potential catalyst for swing traders looking to enter long positions.
Despite XRP registering an 8% increase from its lows in October, the buying volume has been lackluster. This was evident through the On-Balance Volume (OBV) indicator’s maintaining support levels since August, and the Chaikin Money Flow (CMF) signaling strong selling pressure post a sharp rejection at $0.665.
With the daily Relative Analysis Index (RAI) hovering just below the neutral 50 mark, swing traders could consider going long based on the price action, although the absence of robust demand is notable. It is likely that other major altcoins may outperform XRP in the upcoming days or weeks.
Derivative Data Contradicts Bullish Scenario
The Open Interest figure has remained stagnant at $772 million for a significant portion of time post-July. Any price movement above $0.62 would attract more speculators akin to the activity observed in late September.
A noteworthy news event may be necessary to trigger a substantial breakout beyond the $0.62 resistance level. The 3-month liquidation heatmap suggests that the $0.667 level could be the subsequent target in such a scenario.
On closer examination of the short-term heatmaps, the $0.52 and $0.57 levels emerge as nearby pivotal zones that could prompt short-term price reversals.
Disclaimer: The content provided is not to be misconstrued as financial, investment, trading, or any other form of advice and solely reflects the author’s personal opinions.